on february 17 2010 a flood destroyed the work in process inventory and half the raw 3387322

On February 17, 2010, a flood destroyed the work in process inventory and half the raw materials inventory of the LRT Company. There was no damage to the finished goods inventory. A physical inventory taken after the flood indicated the following values: Raw materials …………….. $35,000 Finished goods …………… $79,000 A review of the accounting records indicated the following: Inventories, December 31, 2009 Raw materials …………….. $70,000 Work in process …………… 80,000 Finished goods ……………. 72,000 Sales (to February 17) …………. 50,000 Raw materials purchases ………… $20,000 Direct labor cost ……………. 30,000 Manufacturing overhead cost ……….. 15,000 Gross profit rate (on sales) ………… 40% Required Compute the value of the inventory destroyed by the flood.

 

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